NEW YORK ( BBH FX Strategy) -- The dollar is mixed, with most of the losses coming against the European currencies. The euro made a new high for this move vs. the dollar on Tuesday but so far has been unable to build on it. Support appears to be building for a larger European Financial Stability Facility/European Stability Mechanism firewall ahead of this week's eurozone finance ministers meeting.
The Irish referendum is now set for May 31 and the latest polls indicate it will pass. Italy had a well received T-bill auction, but Prime Minister Mario Monti's support is flagging in latest polls and suggests difficulties ahead in pushing through labor reforms. Near-term resistance expected to come in near 1.34 and then 1.348, while support lies around 1.33.
Sterling is broadly weaker, declining the most in five weeks against the euro after UK fourth-quarter GDP contracted a worse-than-expected -0.3% quarter over quarter. The dollar is flat against the yen, trading to a recent low of 82.61 before recovering back above the 83 level.